Kalamazoo Resources : Positive Metallurgy Results from Test Work at Mt Olympus

ASX Announcement

20 April 2022

Positive Metallurgy Results from Stage 2 Test Work at Mt Olympus

Highlights

• • Positive results received from Stage 2 metallurgical test work on composites from the large Mt Olympus sulphide deposit contained within the 1.65Moz Ashburton Gold Project, WA

• • A variety of gravity and re-grind test work has been performed on Composites 3 and 4 from previous test work

• • Test work resulted in improved silica rejection and increased concentrate grade from Composite 4 from 39g/t Au to 45 g/t Au, with lower sulphide recovery

• • Test work indicates that a simple crush - grind - rougher flotation - multi-stage re-clean flotation circuit to produce a saleable concentrate provides the simplest, least capital intensive and most easily operable process route for the Mt Olympus sulphide mineralisation.

• • Additional positive outcomes include:

  • • Average gravity gold recovery to concentrate of 26%

  • • Whole concentrate assay sampling indicates arsenic values of between 1.2% and 1.6%, falling within acceptable specification for high grade gold concentrates

  • • No other deleterious elements outside acceptable specification identified

• • Project Development Scoping Study commences in Q2, 2022

Kalamazoo's Executive Director Paul Adams said today, "We are extremely pleased with this Stage 2 metallurgical test work at Mt Olympus, which sees improved silica rejection and an increased grade for drill composite 4 of 45 g/t Au, especially when combined with the excellent results from the initial test work which we announced on 11 March 2022. This work will now be used in our planned Project Development Scoping Study which is scheduled to commence shortly. We consider that a simple, easily operable, well understood process flow sheet is the preferred option for the future development of the sulphide resources at our Ashburton Gold Project.

Kalamazoo Resources Limited (ASX: KZR) ("Kalamazoo" or the "Company") is pleased to announce further metallurgical test work results from two (Composites 3 and 4) of the initial four composites chosen for test work from Mt Olympus deposit from RC drill holes KARC035 and KARC036. Mt Olympus has an Indicated and Inferred mineral resource of 15.12Mt at 2.2 g/t gold for 1.08 million ounces and comprises the largest component of Kalamazoo's 1.65Moz mineral resource at the Ashburton Gold Project.

The Ashburton Gold Project is located in the southern edge of the Pilbara Craton, which has been subject to a renewed focus on major gold discoveries and project development in recent years. This includes De Grey Mining Limited's (ASX: DEG) world-class 9Moz oxide/sulphide Mallina discovery, Calidus Resources Limited's (ASX: CAI) 1.5Moz Au Warrawoona Gold Project and Novo Resources Corp's (TSX: NVO; OTCQX: NSRPF) Beatons Creek Gold Project.

The aim of the Stage 2 test work was to assess the likely gravity recoverable gold as a percentage of the total gold recovered. The test work was also undertaken to assess the effect of finer grind size on cleaner concentrate grade in an open circuit test.

Composites 3 and 4 were chosen as they were the lowest gold grade composites from the previous test work and therefore deemed most representative of the four original composites to the overall grade of the Mt Olympus deposit. Composites 3 and 4 were the low gold / high sulphur and low gold / low sulphur composites respectively.

Table 1 below summarises the new re-grind test work results compared to the Stage 1 results recently reported (ASX: KZR 11 March 2022).

Comp	Calc Head grade	Final Cleaner conc (open circuit)
Au	S	SiO2	Mass	Au	S	SiO2
g/t	%	%	%	g/t	%dist	%	%dist	%	%dist
3	4.56	12.42	41.58	20.9	19.4	84.8	49.4	84.1	2.4	1.2
4	4.08	4.76	41.81	6.3	39.2	71.5	48.9	68.6	3.6	0.5
3 Concentrate regrind	4.38	12.39	41.40	17.7	17.2	69.4	50.1	71.5	1.4	0.6
4 Concentrate regrind	3.75	4.53	42.90	5.2	45.4	62.4	49.5	56.4	1.3	0.2

Table 1: Summary of original vs new test work on composites 3 and 4

The regrind test was to assess the impact on concentrate grade. After a re-grind of the rougher concentrate to 45 microns (µm), the combined mass pull from Composites 3 and 4 was reduced from an average of 13.6% to 11.5% with an increase in average grade from 29.3 g/t to 31.3 g/t gold. The results also indicate an improved silica (SiO2) rejection although this was accompanied by a loss of sulphur recovery. Composite 3 results indicated a loss in gold grade (from 19.4 g/t to 17.2g/t Au) due to lower sulphur and gold recovery.

Additional optimisation test work is planned, importantly including locked cycle testing, to assess likely overall gold recovery to concentrate.

The Stage 2 gravity test work was also conducted on all four of the original composites from Stage 1.

Item	Comp 1	Comp 2	Comp 3	Comp 4
Head Grade g/t	7.68 / 7.60	9.27 / 9.21	4.53 / 3.77	3.66 / 3.73
Gravity Concentrate
Au Gravity Rec % to conc	25.4	27.3	27.4	23.9
Au Gravity Rec % tail	74.6	72.7	72.6	76.1
Concentrate leach
Au Gravity conc leach Rec %	26.0	21.0	19.3	25.4
Au overall rec % to leach	6.6	5.7	5.3	6.1

Table 2: Gravity test work results from each of the four composites

In summary, the gravity results were consistent across the four composites with average gravity gold to concentrate recovery of 26%. Leach recovery of that concentrate averaged 23% and is consistent with the metallurgical test work conducted by Northern Star Resources Limited (ASX: NST) in 2012. Overall recoverable leachable gold from gravity concentrate averaged 5.9%.

Results from both the Stage 1 (Figure 1) and Stage 2 initial metallurgical test work conducted by Kalamazoo confirms that the current (subject to further optimisation) preferred flow sheet for these samples is the simplest. Namely:

• 1. Crush - grind to 106 µm

• 2. Rougher flotation

• 3. Multi-stage re-clean flotation to produce a saleable concentrate

• 4. Possible leach of float tail (not tested)

FLOTATION FLOWSHEET :

P80 106µm

Tail

35% solids 5-10% solids no regrind

J-Tail 1

J-Tail 2

J-Tail 3

Clnr J3 Con

Figure 1: Flow sheet diagram for test work and froth float from test

Kalamazoo considers that a simple, easily operable, well understood process flow sheet is the preferred option for any potential future development of the sulphide resources at the Ashburton Gold Project. Further composites would need to be derived, particularly for the Peake deposit which contains the next largest resource base of the four deposits within the Ashburton Gold Project.

Next steps

• • Undertake lock cycle test to estimate overall flotation recovery

• • Possible cyanide leach of flotation tail to estimate total recoverable gold

• • Derive diamond drill core composite samples for any further test work

• • Project Scoping Study to commence Q2, 2022

SiteID	Prospect	East	North	RL	Grid	Depth	PropDip	Azimuth
KARC0035	Mt Olympus	591996	7408316	438.6	GDA94_50	162	-80	35
KARC0036	Mt Olympus	592034	7408297	434.8	GDA94_50	186	-75	100

Figure 2: Location plan of metallurgical drill holes within the Mt Olympus open pit

Table 3: Drill hole location data for the metallurgical holes

Page 4 of 11

Previously Released ASX Material References

For further details relating to information in this announcement please refer to the following ASX announcements:

ASX: NST 5 March 2012

ASX: KZR 23 June 2020

Luke Reinehr	Victoria Humphries	Tom Whiting
Chairman/CEO	Media & Investor Relations	Taylor Collison
[e-mail]	[e-mail]	[e-mail].a
u

ASHBURTON GOLD PROJECT MINERAL RESOURCES
INDICATED	INFERRED	TOTAL
Tonnes (000's)	Grade (g/t)	Ounces (000's)	Tonnes (000's)	Grade (g/t)	Ounces (000's)	Tonnes (000's)	Grade (g/t)	Ounces (000's)	Cut off Grade
Mt Olympus	6,038	2.3	448	9,138	2.2	632	15,176	2.2	1,080	0.7 g/t Au
Peake	113	5.2	19	3,544	3.3	380	3,657	3.4	399	0.9 g/t Au
Waugh	347	3.6	40	240	3.6	28	587	3.6	68	0.9 g/t Au
Zeus	508	2.1	34	532	2.2	38	1,040	2.2	72	0.9 g/t Au
Romulus	-	-	-	329	2.6	27	329	2.6	27	0.9 g/t Au
TOTAL RESOURCES	7,006	2.4	541	13,783	2.5	1,105	20,789	2.5	1,646

ASX: KZR 11 March 2022

Table 4: Ashburton Gold Project (JORC Code 2012) Mineral Resources

The material in this announcement that relates to the Mineral Resources for the Ashburton Gold Project is based on information announced to the ASX on 23 June 2020. The Company confirms that it is not aware of any new information or data that materially affects the information included in the relevant market announcement, and that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply.

This announcement has been approved for release to the ASX by the Board of Kalamazoo Resources Limited.

For further information, please contact:

About Kalamazoo Resources Limited

Kalamazoo Resources Limited (ASX: KZR) is an ASX-listed exploration company with a portfolio of high-quality gold and lithium projects in Victoria and the Pilbara, WA. Kalamazoo is exploring at its 100% owned Castlemaine Goldfield (historical production of ~5.6Moz Au) and south of the Maldon Goldfield (historical production of ~2Moz) near the world class Fosterville gold mine in Victoria. In the Pilbara, Kalamazoo's extensive exploration program is advancing the 100% owned Ashburton Gold Project to further increase the 1.65Moz Au resource and progress development plans. Kalamazoo's lithium projects include the DOM's Hill and Marble Bar Lithium Projects in an exploration joint venture with the major Chilean lithium producer Sociedad Química y Minera de Chile S.A. (SQM) (NYSE: SQM) and the 100% owned Pear Creek Lithium Project.

Kalamazoo has become the first gold and lithium explorer operating in Australia to be certified carbon neutral for its business operations under the Federal Government's Climate Active Program, with projected 2022 emissions fully offset achieved with a verified environmental reforestation program in Western Australia.